Intel CFO Warns of Recession Amid Tariff Concerns, Stock Price Decline

Intel Corporation (NASDAQ: INTC) is navigating a complex economic environment, with its Chief Financial Officer, David Zinsner, warning of potential recession risks spurred by international trade tariffs imposed by President Donald Trump. Despite reporting robust first-quarter earnings that surpassed expectations, the semiconductor giant saw its stock decline significantly. This drop was attributed to the company’s cautious revenue and profit outlook for the upcoming quarter, which was below market expectations.

The uncertainty surrounding trade policies has made it difficult for Intel to forecast its financial performance accurately, impacting both production costs and demand. Additionally, Intel’s new CEO, Lip-Bu Tan, has announced plans to implement measures aimed at reducing costs to bolster the company’s operational efficiency.

Intel CFO Warns of Potential Economic Slowdown Resulting from Trade Tensions

Intel’s financial leadership has raised alarms about the potential economic slowdown resulting from ongoing trade tensions. CFO David Zinsner highlighted the risk of a recession driven by tariffs and retaliatory actions from global trade partners.

These economic conditions have introduced significant unpredictability into Intel’s business operations, particularly affecting its ability to project future revenue streams. The trade measures have not only increased production costs but have also created fluctuations in market demand, complicating Intel’s strategic planning.

Furthermore, the company is contending with potential regulatory challenges, as the U.S. government considers requiring licenses for exporting advanced AI chips to China, adding another layer of complexity to Intel’s international operations.

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INTC Stock Brief

Intel’s stock performance has been volatile, reflecting the broader economic concerns and company-specific challenges. The stock opened at $19.74, a notable drop from its previous close of $21.49, and fluctuated between a low of $19.34 and a high of $20.18 within the trading day.

As of April 25, 2025, the stock was priced at $20.06. Despite a market capitalization of over $87 billion, Intel’s financial metrics reveal areas of concern, such as a trailing EPS of -$4.38 and a forward P/E ratio of 20.68.

The company’s debt to equity ratio stands at 47.129, indicating a leveraged position, while its quick ratio of 0.749 suggests potential liquidity challenges. Analyst recommendations currently rate the stock as a hold, with a target mean price of $22.00, reflecting cautious optimism about Intel’s future performance amid economic uncertainties.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.